“We delivered a strong quarter, exceeding our company financial targets
across the board,” said Brad Smith, Intuit’s president and chief
executive officer. “Our Small Business online ecosystem momentum
continues to build, with steady subscriber growth again this quarter. On
the heels of this performance, we’ve raised our QuickBooks Online
subscriber guidance for this fiscal year.

“Overall, early indicators and unit results show our tax strategy is on
track. While we faced some initial challenges as a result of a change to
our desktop product lineup, we took swift action in response to our
customers’ feedback. While doing so, we continue to take proactive
measures to navigate a heightened sense of concern about tax fraud in
the American tax system.

“Beyond these challenges, we are inspired by the opportunities in front
of us and we remain deeply committed to accelerating both customer and
revenue growth across the company,” said Smith.

Financial Highlights

Unless otherwise noted, all growth rates refer to the current period
versus the comparable prior-year period, and the business metrics and
associated growth rates refer to worldwide business metrics.

During the second quarter, Intuit:

Delivered total company revenue of $808 million, up 3 percent, driven
by the ongoing acceleration to the cloud.

Within the consumer segment, Consumer Tax revenue grew 54 percent,
benefitting from an earlier start to this year’s tax season compared
with last year.

ProTax revenue declined 69 percent. As previously disclosed, the
company expects that approximately $150 million in fiscal year 2015
revenue will shift to 2016 due to changes in current desktop offerings
that will affect the timing of revenue recognition.

Snapshot of Second-quarter Results

GAAP

Non-GAAP

Q2

Q2

Q2

Q2

FY ’15

FY ’14

Change

FY ’15

FY ’14

Change

Revenue

$808

$782

3%

$808

$782

3%

Operating Income (Loss)

($98)

($46)

NM

($20)

$17

NM

EPS

($0.23)

($0.13)

NM

($0.06)

$0.02

NM

Dollars are in millions, except earnings per share (EPS). See “About
Non-GAAP Financial Measures” below for more information regarding
financial measures not prepared in accordance with Generally Accepted
Accounting Principles (GAAP). Q2 FY15 results reflect the impact of
changes to future desktop software offerings; revenue for those
offerings is now recognized as services are delivered, rather than up
front.

Capital Allocation Summary

Ended the second quarter with approximately $1.4 billion in cash and
investments.

In the second quarter, repurchased $555 million of shares; about $1.2
billion remains on the current authorization.

Intuit’s board of directors approved a $0.25 dividend for the fiscal
third quarter, payable on April 20. This represents a 32 percent
increase versus last year and reflects a large and growing cash
position, as well as more recurring and predictable revenue streams.

Forward-looking Guidance

Intuit provided guidance for the third and fourth quarters of fiscal
year 2015. The company reiterated financial guidance and raised
QuickBooks Online subscriber guidance for full fiscal 2015.

This guidance factors in the company’s strategic decision to deliver
ongoing services and releases for its future desktop offerings to
encourage migration to online solutions. As a result, revenue for future
desktop software licenses will be recognized as services are delivered,
rather than up front.

For the third quarter of fiscal 2015, Intuit expects:

Revenue of $2.075 billion to $2.150 billion.

GAAP operating income of $1.090 billion to $1.110 billion.

Non-GAAP operating income of $1.170 billion to $1.190 billion.

GAAP earnings per share of $2.50 to $2.55.

Non-GAAP earnings per share of $2.70 to $2.75.

QuickBooks Online subscribers of approximately 925,000.

For the fourth quarter of fiscal 2015, Intuit expects:

Revenue of $720 million to $745 million.

GAAP loss per share of $0.23 to $0.25.

Non-GAAP loss per share of $0.06 to $0.08.

For fiscal year 2015, Intuit expects:

Revenue of $4.275 billion to $4.375 billion, a decline of 3 to 5
percent.

GAAP operating income of $800 million to $830 million.

Non-GAAP operating income of $1.110 billion to $1.140 billion.

GAAP diluted EPS of $1.70 to $1.75.

Non-GAAP diluted EPS of $2.45 to $2.50.

QuickBooks Online subscribers of 975,000 to 1 million.

Intuit will provide its second tax unit update in late April after the
tax season ends.

Conference Call and Replay Information

Intuit executives will discuss the financial results on a conference
call at 1:30 p.m. Pacific time on that day. To hear the call, dial
866-814-1913 in the United States or 703-639-1357 from international
locations. No reservation or access code is needed. The conference call
can also be heard live at http://investors.intuit.com/events/default.aspx.
Prepared remarks for the call will be available on Intuit’s Investor
Relations website after the call ends.

Replay Information

A replay of the conference call will be available for one week by
calling 888-266-2081, or 703-925-2533 from international locations. The
access code for this call is 1651570.

The audio webcast will remain available on Intuit’s website for one week
after the conference call.

About Intuit Inc.

Intuit Inc. creates business and
financial management solutions that simplify the business of life for
small businesses, consumers and accounting professionals.

Its flagship products and services include QuickBooks®,
Quicken®
and TurboTax®,
which make it easier to manage small businesses and payroll processing,
personal finance, and tax preparation and filing. Mint.com
provides a fresh, easy and intelligent way for people to manage their
money, while Demandforce®
offers marketing and communication tools for small businesses. ProSeries®
and Lacerte®
are Intuit's leading tax preparation offerings for professional
accountants.

Founded in 1983, Intuit had revenue of $4.5 billion in its fiscal year
2014. The company has approximately 8,000 employees with major offices
in the United States, Canada, the United Kingdom, India and other
locations. More information can be found at www.intuit.com.

Intuit and the Intuit logo, among others, are registered trademarks
and/or registered service marks of Intuit Inc. in the United States and
other countries.

About Non-GAAP Financial Measures

This press release and the accompanying tables include non-GAAP
financial measures. For a description of these non-GAAP financial
measures, including the reasons management uses each measure, and
reconciliations of these non-GAAP financial measures to the most
directly comparable financial measures prepared in accordance with
Generally Accepted Accounting Principles, please see the section of the
accompanying tables titled "About Non-GAAP Financial Measures" as well
as the related Table B and Table E. A copy of the press release issued
by Intuit today can be found on the investor relations page of Intuit's
Web site.

Cautions About Forward-looking Statements

This press release contains forward-looking statements, including
forecasts of expected growth and future financial results of Intuit and
its reporting segments; Intuit’s prospects for the business in fiscal
2015 and beyond; expectations regarding growth opportunities from
connected services; expectations regarding Intuit’s growth outside the
US; expectations regarding timing and growth of revenue for each of
Intuit’s reporting segments and from current or future products and
services; expectations regarding customer growth; expectations regarding
changes to our products and their impact on Intuit’s business;
expectations regarding the amount and timing of any future dividends or
share repurchases; expectations regarding acquisitions and divestitures
and their impact on Intuit’s business; expectations regarding
availability of our offerings; all of the statements under the heading
“Forward-looking Guidance”; expectations regarding our ability to detect
and prevent fraudulent activities that impact our offerings;
expectations regarding the impact of such fraudulent activities on
customer confidence and our results for the tax season; and expectations
regarding the impact of our strategic decisions on Intuit’s business.
Because these forward-looking statements involve risks and
uncertainties, there are important factors that could cause our actual
results to differ materially from the expectations expressed in the
forward-looking statements. More details about the risks that may impact
our business are included in our Form 10-K for fiscal 2014 and in our
other SEC filings. You can locate these reports through our website at http://investors.intuit.com.
Forward-looking statements are based on information as of Feb.19, 2015
and we do not undertake any duty to update any forward-looking statement
or other information in these materials.

TABLE A

INTUIT INC.

GAAP CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except per share amounts)

(Unaudited)

Three Months Ended

Six Months Ended

January 31,

January 31,

January 31,

January 31,

2015

2014

2015

2014

Net revenue:

Product

$

198

$

287

$

431

$

516

Service and other

610

495

1,049

888

Total net revenue

808

782

1,480

1,404

Costs and expenses:

Cost of revenue:

Cost of product revenue

44

45

78

74

Cost of service and other revenue

153

125

284

233

Amortization of acquired technology

9

6

19

12

Selling and marketing

376

352

657

610

Research and development

200

186

400

362

General and administrative

118

109

242

227

Amortization of other acquired intangible assets

6

5

12

9

Total costs and expenses [A]

906

828

1,692

1,527

Operating loss from continuing operations

(98

)

(46

)

(212

)

(123

)

Interest expense

(7

)

(8

)

(14

)

(16

)

Interest and other income, net

2

—

2

5

Loss before income taxes

(103

)

(54

)

(224

)

(134

)

Income tax benefit [B]

(37

)

(17

)

(74

)

(40

)

Net loss from continuing operations

(66

)

(37

)

(150

)

(94

)

Net income from discontinued operations [C]

—

—

—

46

Net loss

$

(66

)

$

(37

)

$

(150

)

$

(48

)

Basic net loss per share from continuing operations

$

(0.23

)

$

(0.13

)

$

(0.53

)

$

(0.33

)

Basic net income per share from discontinued operations

—

—

—

0.16

Basic net loss per share

$

(0.23

)

$

(0.13

)

$

(0.53

)

$

(0.17

)

Shares used in basic per share calculations

285

284

285

286

Diluted net loss per share from continuing operations

$

(0.23

)

$

(0.13

)

$

(0.53

)

$

(0.33

)

Diluted net income per share from discontinued operations

—

—

—

0.16

Diluted net loss per share

$

(0.23

)

$

(0.13

)

$

(0.53

)

$

(0.17

)

Shares used in diluted per share calculations

285

284

285

286

Cash dividends declared per common share

$

0.25

$

0.19

$

0.50

$

0.38

See accompanying Notes.

INTUIT INC.

NOTES TO TABLE A

[A]

The following table summarizes the total share-based compensation
expense that we recorded in operating loss from continuing
operations for the periods shown.

Three Months Ended

Six Months Ended

(in millions)

January 31,2015

January 31,2014

January 31,2015

January 31,2014

Cost of revenue

$

2

$

2

$

4

$

4

Selling and marketing

18

16

36

31

Research and development

20

16

40

30

General and administrative

21

18

42

34

Total share-based compensation expense

$

61

$

52

$

122

$

99

[B]

We compute our provision for or benefit from income taxes by
applying the estimated annual effective tax rate to income or loss
from recurring operations and adding the effects of any discrete
income tax items specific to the period.

In December 2014 the Tax Increase Prevention Act of 2014 was signed
into law. The Act includes a reinstatement of the federal research
and experimentation credit through December 31, 2014 that was
retroactive to January 1, 2014. We recorded a discrete tax benefit
of approximately $11 million for the retroactive effect during the
three and six months ended January 31, 2015.

Our effective tax rates for the three and six months ended January
31, 2015 were approximately 36% and 33%. Excluding discrete tax
items primarily related to the reinstatement of the federal research
and experimentation credit, as well as including the effects of
losses in certain jurisdictions where we do not recognize a tax
benefit, our effective tax rate for those periods was approximately
36% and did not differ significantly from the federal statutory rate
of 35%.

Our effective tax rates for the three and six months ended January
31, 2014 were approximately 31% and 30%. Excluding the impact of
discrete tax items primarily related to share-based compensation,
our effective tax rate for those periods was approximately 34% and
did not differ significantly from the federal statutory rate of 35%.

[C]

On August 1, 2013 we completed the sale of our Intuit Financial
Services (IFS) business for approximately $1.025 billion in cash. We
recorded a gain on the disposal of IFS of approximately $36 million,
net of income taxes, in the first quarter of fiscal 2014.

On August 19, 2013 we completed the sale of our Intuit Health
business for cash consideration that was not significant and
recorded a loss on disposal that was offset by a related income tax
benefit of approximately $14 million, resulting in a net gain on
disposal of approximately $10 million in the first quarter of fiscal
2014.

We have reclassified our statements of operations for all periods
presented to reflect these two businesses as discontinued
operations. Because the cash flows of our IFS and Intuit Health
discontinued operations were not material for any period presented,
we have not segregated the cash flows of those businesses from
continuing operations on our statements of cash flows.

TABLE B

INTUIT INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

TO MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES

(In millions, except per share amounts)

(Unaudited)

Three Months Ended

Six Months Ended

January 31,

January 31,

January 31,

January 31,

2015

2014

2015

2014

GAAP operating loss from continuing operations

$

(98

)

$

(46

)

$

(212

)

$

(123

)

Amortization of acquired technology

9

6

19

12

Amortization of other acquired intangible assets

6

5

12

9

Professional fees for business combinations

2

—

3

—

Share-based compensation expense

61

52

122

99

Non-GAAP operating income (loss) from continuing operations

$

(20

)

$

17

$

(56

)

$

(3

)

GAAP net loss

$

(66

)

$

(37

)

$

(150

)

$

(48

)

Amortization of acquired technology

9

6

19

12

Amortization of other acquired intangible assets

6

5

12

9

Professional fees for business combinations

2

—

3

—

Share-based compensation expense

61

52

122

99

Net gains on debt securities and other investments

—

1

1

(1

)

Income tax effects and adjustments

(28

)

(20

)

(51

)

(34

)

Net income from discontinued operations

—

—

—

(46

)

Non-GAAP net income (loss)

$

(16

)

$

7

$

(44

)

$

(9

)

GAAP diluted net loss per share

$

(0.23

)

$

(0.13

)

$

(0.53

)

$

(0.17

)

Amortization of acquired technology

0.03

0.02

0.07

0.04

Amortization of other acquired intangible assets

0.02

0.02

0.04

0.03

Professional fees for business combinations

0.01

—

0.01

—

Share-based compensation expense

0.21

0.18

0.43

0.35

Net gains on debt securities and other investments

—

—

—

—

Income tax effects and adjustments

(0.10

)

(0.07

)

(0.17

)

(0.12

)

Net income from discontinued operations

—

—

—

(0.16

)

Non-GAAP diluted net income (loss) per share

$

(0.06

)

$

0.02

$

(0.15

)

$

(0.03

)

Shares used in diluted per share calculation

285

284

285

286

See “About Non-GAAP Financial Measures” immediately following Table E
for information on these measures, the items excluded from the most
directly comparable GAAP measures in arriving at non-GAAP financial
measures, and the reasons management uses each measure and excludes the
specified amounts in arriving at each non-GAAP financial measure.

TABLE C

INTUIT INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

(Unaudited)

January 31, 2015

July 31, 2014

ASSETS

Current assets:

Cash and cash equivalents

$

482

$

849

Investments

885

1,065

Accounts receivable, net

459

134

Income taxes receivable

146

35

Deferred income taxes

149

133

Prepaid expenses and other current assets

103

116

Current assets before funds held for customers

2,224

2,332

Funds held for customers

354

289

Total current assets

2,578

2,621

Long-term investments

35

31

Property and equipment, net

643

606

Goodwill

1,688

1,635

Acquired intangible assets, net

187

199

Other assets

114

109

Total assets

$

5,245

$

5,201

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$

273

$

161

Accrued compensation and related liabilities

199

278

Deferred revenue

888

526

Other current liabilities

395

167

Current liabilities before customer fund deposits

1,755

1,132

Customer fund deposits

354

289

Total current liabilities

2,109

1,421

Long-term debt

499

499

Long-term deferred revenue

83

10

Other long-term obligations

200

193

Total liabilities

2,891

2,123

Stockholders’ equity

2,354

3,078

Total liabilities and stockholders’ equity

$

5,245

$

5,201

TABLE D

INTUIT INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

Six Months Ended

January 31,

January 31,

2015

2014

Cash flows from operating activities:

Net loss

$

(150

)

$

(48

)

Adjustments to reconcile net loss to net cash used in operating
activities:

Depreciation

75

75

Amortization of acquired intangible assets

36

25

Share-based compensation expense

122

99

Pre-tax gain on sale of discontinued operations

—

(40

)

Deferred income taxes

(16

)

66

Tax benefit from share-based compensation plans

38

43

Excess tax benefit from share-based compensation plans

(38

)

(43

)

Other

19

11

Total adjustments

236

236

Changes in operating assets and liabilities:

Accounts receivable

(327

)

(308

)

Income taxes receivable

(110

)

(161

)

Prepaid expenses and other assets

12

(29

)

Accounts payable

116

88

Accrued compensation and related liabilities

(79

)

(49

)

Deferred revenue

439

326

Other liabilities

110

87

Total changes in operating assets and liabilities

161

(46

)

Net cash provided by operating activities

247

142

Cash flows from investing activities:

Purchases of available-for-sale debt securities

(619

)

(320

)

Sales of available-for-sale debt securities

458

145

Maturities of available-for-sale debt securities

328

147

Net change in money market funds and other cash equivalents held
to satisfy customer fund obligations

See “About Non-GAAP Financial Measures” immediately following this
Table E for information on these measures, the items excluded from
the most directly comparable GAAP measures in arriving at non-GAAP
financial measures, and the reasons management uses each measure
and excludes the specified amounts in arriving at each non-GAAP
financial measure.

[a]

Reflects estimated adjustments for share-based compensation expense
of approximately $66 million, amortization of acquired technology of
approximately $8 million, and amortization of other acquired
intangible assets of approximately $6 million.

[b]

Reflects the estimated adjustments in item [a], income taxes related
to these adjustments, and other income tax effects related to the
use of the long-term non-GAAP tax rate.

[c]

Reflects estimated adjustments for share-based compensation expense
of approximately $63 million, amortization of acquired technology of
approximately $8 million, and amortization of other acquired
intangible assets of approximately $6 million. Also reflects income
taxes related to these adjustments and other income tax effects
related to the use of the long-term non-GAAP tax rate.

[d]

Reflects estimated adjustments for share-based compensation expense
of approximately $251 million; amortization of acquired technology
of approximately $35 million; and amortization of other acquired
intangible assets of approximately $24 million.

[e]

Reflects the estimated adjustments in item [d], income taxes related
to these adjustments, and other income tax effects related to the
use of the long-term non-GAAP tax rate.

Non-GAAP financial measures should not be considered as a substitute
for, or superior to, measures of financial performance prepared in
accordance with GAAP. These non-GAAP financial measures do not reflect a
comprehensive system of accounting, differ from GAAP measures with the
same names and may differ from non-GAAP financial measures with the same
or similar names that are used by other companies.

We compute non-GAAP financial measures using the same consistent method
from quarter to quarter and year to year. We may consider whether other
significant items that arise in the future should be excluded from our
non-GAAP financial measures.

We exclude the following items from all of our non-GAAP financial
measures:

Share-based compensation expense

Amortization of acquired technology

Amortization of other acquired intangible assets

Goodwill and intangible asset impairment charges

Professional fees for business combinations

We also exclude the following items from non-GAAP net income (loss) and
diluted net income (loss) per share:

Gains and losses on debt and equity securities and other investments

Income tax effects and adjustments

Discontinued operations

We believe that these non-GAAP financial measures provide meaningful
supplemental information regarding Intuit’s operating results primarily
because they exclude amounts that we do not consider part of ongoing
operating results when planning and forecasting and when assessing the
performance of the organization, our individual operating segments or
our senior management. Segment managers are not held accountable for
share-based compensation expense, amortization, or the other excluded
items and, accordingly, we exclude these amounts from our measures of
segment performance. We believe that our non-GAAP financial measures
also facilitate the comparison by management and investors of results
for current periods and guidance for future periods with results for
past periods.

The following are descriptions of the items we exclude from our non-GAAP
financial measures.

Share-based compensation expenses. These consist of non-cash
expenses for stock options, restricted stock units and our Employee
Stock Purchase Plan. When considering the impact of equity awards, we
place greater emphasis on overall shareholder dilution rather than the
accounting charges associated with those awards.

Amortization of acquired technology and amortization of other
acquired intangible assets. When we acquire an entity, we are
required by GAAP to record the fair values of the intangible assets of
the entity and amortize them over their useful lives. Amortization of
acquired technology in cost of revenue includes amortization of software
and other technology assets of acquired entities. Amortization of other
acquired intangible assets in operating expenses includes amortization
of assets such as customer lists, covenants not to compete and trade
names.

Goodwill and intangible asset impairment charges. We exclude from
our non-GAAP financial measures non-cash charges to adjust the carrying
values of goodwill and other acquired intangible assets to their
estimated fair values.

Professional fees for business combinations. We exclude from our
non-GAAP financial measures the professional fees we incur to complete
business combinations. These include investment banking, legal and
accounting fees.

Gains and losses on debt and equity securities and other investments.
We exclude from our non-GAAP financial measures gains and losses that we
record when we sell or impair available-for-sale debt and equity
securities and other investments.

Income tax effects and adjustments. During fiscal 2014, we
excluded from our non-GAAP financial measures the income tax effects of
the non-GAAP pre-tax adjustments described above, as well as income tax
effects related to business combinations. In addition, the effects of
one-time income tax adjustments recorded in a specific quarter for GAAP
purposes were reflected on a forecasted basis in our non-GAAP financial
measures. This was consistent with how we were evaluating our operating
results and planning, forecasting, and evaluating future periods during
that fiscal year.

During fiscal 2015, we began using a long-term non-GAAP tax rate for
evaluating operating results and for planning, forecasting, and
analyzing future periods. This long-term non-GAAP tax rate excludes the
income tax effects of the non-GAAP pre-tax adjustments described above,
assumes the federal research and experimentation credit is continuously
in effect, and eliminates the effects of non-recurring and period
specific items which can vary in size and frequency. Based on our
current long-term projections, we are using a long-term non-GAAP tax
rate of 34% which is consistent with the average of our normalized
fiscal year tax rate over a four year period that includes the past
three fiscal years plus the current fiscal year forecast. We will
evaluate this long-term non-GAAP tax rate on an annual basis and
whenever any significant events occur which may materially affect this
long-term rate. This long-term non-GAAP tax rate could be subject to
change for various reasons including significant changes in our
geographic earnings mix or fundamental tax law changes in major
jurisdictions in which we operate.

Operating results and gains and losses on the sale of discontinued
operations. From time to time, we sell or otherwise dispose of
selected operations as we adjust our portfolio of businesses to meet our
strategic goals. In accordance with GAAP, we segregate the operating
results of discontinued operations as well as gains and losses on the
sale of these discontinued operations from continuing operations on our
GAAP statements of operations but continue to include them in GAAP net
income or loss and net income or loss per share. We exclude these
amounts from our non-GAAP financial measures.

The reconciliations of the forward-looking non-GAAP financial measures
to the most directly comparable GAAP financial measures in Table E
include all information reasonably available to Intuit at the date of
this press release. These tables include adjustments that we can
reasonably predict. Events that could cause the reconciliation to change
include acquisitions and divestitures of businesses, goodwill and other
asset impairments, and sales of available-for-sale debt securities and
other investments.